According to the Bermuda daily, Royal Gazette, excess capacity in the global fleet of liquefied natural gas carriers will be at its highest this decade in 2008, due to a growing, worldwide fleet causing lower utilisation rates and it is predicted by analysts that utilisation of the LNG fleet will fall to 77.4 per cent in 2008, almost 13 percentage points lower than at the beginning of the decade.

Demand for LNG tankers has deteriorated markedly as a result of a large increase in fleet supply partly caused by speculative orders for new ships.

Falling utilisation is hurting revenue for companies such as Oslo-based Bergesen Worldwide Gas ASA and Golar LNG of Hamilton, Bermuda while rising earnings for operating LNG tankers have encouraged some shipowners to order vessels without first having them assigned to particular projects.

Analysts also report that improved productivity in the existing fleet has added to the surplus capacity. The growth in the surplus is already slowing because supply disruption from Indonesia is forcing Japan, the world's largest LNG importer, to source shipments from further away, tying up ships for longer periods.

The global fleet of LNG carriers will expand 16 per cent by the first quarter of 2007, according to Oslo-based shipbrokers R.S. Platou AS.

Piracy figures show worsening trend

The number of reported piracy attacks worldwide in the first six months of 2006 remained at 127, compared with the same figure during the corresponding period in 2005 and this trend shows that the previous decline in the number of attacks is levelling off.

In its latest 'Piracy and Armed Robbery Against Ships' report, the International Maritime Bureau (IMB) lists the above figures with 74 instances of boarding of which 11 ships were hijacked.

The statistics also show 156 seafarers were taken hostage, 13 were kidnapped and six killed.

Commenting on the 2006 piracy figures Captain Pottengal Mukundan, Director of the IMB said: "The decline in attacks over the past two years would appear to have slowed down and new high risk areas have emerged. It is vital that the governments in these areas give priority to this crime and resource law enforcement agencies to tackle it.

In areas such as the Malacca Straits, where the decline continues, we call upon law enforcement agencies to maintain the initiatives which have been successful. If the pressure lets up, the attacks will rise again."

The Malacca Straits have shown continued improvement with just three attacks compared to eight for the same period in 2005. However, since the end of June 2006, three further incidents within a two day period were reported, although the trend remains promising due to concerted efforts by coastal enforcement agencies. Elsewhere in that region, however, Indonesia recorded 33 incidents, the highest number this half year.

The coastal region off Somalia remains high risk with eight attacks by pirates armed with guns and grenades. The IMB warns that ships not making scheduled calls to ports in these areas should stay at least 200 miles or as far away as practical from the eastern coast of Somalia.

Bangladesh recorded 22 attacks, all at the port/anchorage of Chittagong. Violence and intimidation of crew continues to be a hallmark of these attacks, with many of the pirates armed with guns and knives.

Maersk closes offices in war zone

Maersk Line has temporarily closed its offices in Haifa and Beirut. In a statement the company said: "The port of Haifa in Israel is currently closed and all import and export cargo will be routed via Ashdod, Israel."

A second statement added: "We have also temporarily ceased the acceptance of import and export cargo for Lebanon. Import cargo destined for Lebanon and already on the water will be retained in Port Said until further notice." Maersk also said export cargo from Jordan will currently not be routed via Israel, but will instead be loaded in the Jordanian port of Aqaba.

However, in Syria, the acceptance of export cargo would continue and the acceptance of import cargo had been re-opened. The company also appealed to customers to contact their local Maersk Line representatives for more information.

Meanwhile, the volatile situation has caused dry bulk vessel owners to 'steer clear' of ship charter business for cargo delivery to Syria, Lebanon and Israel with Eastern Mediterranean brokers reporting few ship charter inquiries in the spot market for delivery of dry bulk cargoes in the region. Israel, Lebanon and their neighbours are all buyers of corn and wheat from the United States.

Philippine operator wins Syrian deal

The Philippine-based global port operator International Container Terminal Services (ICTSI) has won the bidding to operate the Tartous Container Terminal (TCT) in Syria, following its privatisation.

ICTSI beat French CMA CGM, Kuwait and Gulf Link Transport/Gulf Stevedoring, and OPM/PWC Logistics by securing the 10-year container terminal operating concession with an option to extend for another five years.

The Tartous port authority Tartous Port General Co (TPGC) said that under the deal, ICTSI will pay TPGC a yearly fee according to TEUs handled.

ICTSI is set to invest $37 million in facilities improvement and equipment acquisition over the entire concession period. The investment will go into the rehabilitation and development of existing facilities including the construction of an administration building, workshop, reefer racks and terminal gates.

- The writer is a Dubai-based marine consultant.